Full Breakdown
Reform UK Pledges £15,000 Tax-Free Personal Allowance
9/5/2026, 7:55:06 AM
Core Policy Announcement
Reform UK’s economic spokesman, Robert Jenrick, told the party conference in Birmingham that, if the party wins the next general election, it will raise the tax-free personal allowance from the current £12,500 to £15,000. He framed the change as the party’s flagship fiscal proposal and said it would be introduced within the first 100 days of becoming chancellor.
Economic Rationale and Cost Estimates
Reform estimates that lifting the threshold by £2,430 would save most taxpayers roughly £500 a year and allow 2.9 million people to stop paying income tax altogether. The party calculates the policy would cost £17.7 billion in its first year, rising to £21 billion by the fifth year. Reform argues the expense could be covered by £80 billion of public-spending cuts it plans to implement, including a £50 billion reduction in welfare spending. While half of the £353 billion welfare budget funds the state pension, Reform says it would protect pension spending and instead cut disability benefits and some benefits for foreign nationals.
Political Context and Long-Term Aim
In its 2024 general-election manifesto, Reform pledged to lift the allowance to £20,000. Jenrick indicated that the £15,000 figure is a short-term step, with the higher target remaining the party’s long-term goal.
Labour leader Andy Burnham, speaking about constituent frustration in Makerfield over the frozen allowance, said the issue would be examined in the upcoming Budget but warned that any change would be “difficult given the financial circumstances.”
Projected Impact on Taxpayers
If implemented, the increase would remove income-tax liability for the estimated 2.9 million individuals currently just above the existing threshold. Reform claims the measure would benefit low-paid workers, noting that a full-time minimum-wage employee loses more than £750 a year under the current freeze.
Official Responses and Outlook
The party’s broader fiscal plan hinges on substantial welfare cuts, a strategy that will likely be scrutinised in the next Budget and during the forthcoming election campaign.
